12 July 2021
Hi sir, Assessee is a Doctor who does not have any taxable supply but he imports services ( software service ) for his business purpose.
My questions. 1. Is this liable for tax under RCM? 2. If RCM applies then compulsory GST registration to obtained ? 3. Suppose such import services of services used for other business purpose whether RCM and Registration applies on him ?
12 July 2021
1. In the said case the import of software service is for a consideration and in course of furtherance of business. Hence it is liable to GST and covered under reverse charge mechanism. 2. As it comes under compulsory registration, the threshold criterions for registration is also not relevant. Hence the assessee has to obtain registration and pay GST on RCM basis. 3. Yes. Even if it is for purpose of other business, the assessee has to obtain registration and discharge tax
12 July 2021
I believe that the software is made available online and can be downloaded over internet. If yes, it will be classified as OIDAR services. If the transaction is entered into as a registered person then even if the software is for personal use, one has to discharge the GST liability on RCM basis and then reverse the ITC as one is not entitled claim the same in the returns. If transaction is entered into as an unregistered person (i.e., non-taxable online recipient), then, it will be the obligation of supplier to collect and remit GST to Authorities.
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